NZD/USD Firms, Building Approvals & ANZ Business Confidence On Tap Today

NZD/USD was the second best performer in the G10 space for Monday's session, up nearly 0.60% (only trailing AUD). We were mostly on the front foot post the Asia close, getting back above 0.5840 in late NY trade and tracking just above Friday session highs. We track close to 0.5845 in early dealings today.

• Technically, the 20-day EMA is not too far away at 0.5875, but key resistance is still likely around the 100-day (near 0.6000), which hasn't been meaningfully breached since July of this year. Last week's YTD low at 0.5774 remains eyed on the downside.
• Broader risk appetite remained on the front foot in the equity space, with major US markets up over 1% in Monday cash trade. Oil prices continued to track lower (Brent down 2.84%), despite Israel PM Netanyahu saying Israel will not agree to any ceasefire with Hamas. The market may be more comfortable with the theme of a contained conflict between Israel and Hamas, rather than broader spill over to other parts of the Middle East.
• US yields rose across the curve, (5-6bps across the curve), but this didn't boost the USD meaningfully, as FX markets took broader cues from the equity rebound.
• On the data front today, coming up shortly is building permits for September. There is no consensus, the prior read was -6.7% m/m. Later on, the Oct ANZ activity and business confidence prints are due.